Intel Faces Export License Requirement for Gaudi Chips to China, No Leverage from Trump Administration

The recent trade policies implemented by the United States Government have taken a toll on the global tech landscape, particularly affecting major chipmakers like Intel. According to reports, Intel will now require an export license to sell its Gaudi chips to clients in China, marking a significant shift in operations.

New Export License Requirements for Intel’s Gaudi Chips: An Impact Assessment

Recent insights highlighted the struggles faced by NVIDIA due to these trade restrictions. The company is now prohibited from selling its H20 AI accelerators to Chinese markets, which is projected to result in losses amounting to “billions of dollars.”Similarly, AMD is currently grappling with export controls, leading many to believe that Intel, as a U. S.-based chip manufacturer, might avoid such stringent limitations. However, the latest updates from Financial Times via Reuters suggest otherwise, indicating that Intel would also face severe restrictions in marketing its high-end AI accelerators.

The regulations specify that Intel cannot export any AI chips exhibiting a DRAM bandwidth of 1, 400 GB/s or greater. This limitation directly impacts the company’s Gaudi series. Although Intel’s market footprint in China is less extensive compared to NVIDIA’s, it has successfully partnered with major players like ByteDance, which relied on Intel’s offerings as alternatives to NVIDIA’s products. With the new licensing requirement, Intel may need to navigate complex legal frameworks before it can distribute its accelerators.

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The trade policies recently enacted during the Trump administration have created significant hurdles for tech giants like NVIDIA and AMD. With these companies restricted from selling chips directly to China, maintaining a foothold in this vital market has become increasingly complex. Furthermore, these measures are likely to bolster China’s domestic tech initiatives, prompting a shift toward local alternatives such as Huawei’s Ascend chips.

As the situation develops, it will be fascinating to observe how these companies might innovate or adapt their strategies during these challenging times. They may be compelled to provide more simplified or reduced-capability solutions, though exiting the market altogether seems unlikely in the near future.

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